Hertz downgraded to Hold from Buy at Jefferies

Jefferies downgraded Hertz to Hold from Buy with a price target of $8, down from $12. The analyst says electric vehicle repair issues, higher operating expenditures and depreciation per unit will limit the company’s near-term profitability. The firm thinks consensus 2024 estimates “will likely prove to be too optimistic.” Given the remediation of these issues are neither simple nor quick, Jefferies does not have a ton of conviction in even its reduced 2024 EBTIDA estimate, limiting near-term upside in the shares, the analyst notes.